Can you Claim Depreciation on Commercial Property?

Hi. I’m Tyron Hyde from Washington Brown. When I first bought this property in the city two years ago, it looked like this. It was ugly, run-down, and in desperate need of some TLC. But the location, the heart of the city, is Depreciation Quote Schedule perfect. So I got a designer to create a new floor plan and hired a builder to carry out the work. It was a substantial fit-out including new paint, carpet, workstations, and partitions. We even installed a new kitchen and a reception area.

At the end of the project, the builder gave us a tax invoice for $200,000. Now, I’ve seen situations where owners take the fit out cost and multiply that by 2.5% per annum. That’s the rate of which you can claim general fit-out costs. Now if I deduct based upon our $200,000 fit-out, I’ll only be able to claim $5,000 as a tax depreciation claim. Instead, I asked the builder to break down the cost relative to the appropriate trade like carpets, air conditioning, workstations, etc. We did apportion part of the builder’s cost such as management fees, each of those trades. And guess what?

Our depreciation the first year alone was $35,000, not 5! That’s where knowing the construction costs and tax law together could make a world of difference. So there you have it! From this to this! Yes it was expensive but being able to claim $35,000 depreciation in one year alone was a significant boost.

To learn more about commercial property depreciation follow the link.

Or get a quote for a depreciation schedule by click here

claim depreciation on commercial property

Can you claim depreciation on commercial property?

Hi. I’m Tyron Hyde from Washington Brown. When I first bought this property in the city two years ago, it looked like this. It was ugly, run-down, and in desperate need of some TLC. But the location, the heart of the city, is Depreciation Quote Schedule perfect. So I got a designer to create a new floor plan and hired a builder to carry out the work. It was a substantial fit-out including new paint, carpet, workstations, and partitions. We even installed a new kitchen and a reception area.

At the end of the project, the builder gave us a tax invoice for $200,000. Now, I’ve seen situations where owners take the fit out cost and multiply that by 2.5% per annum. That’s the rate of which you can claim general fit-out costs. Now if I deduct based upon our $200,000 fit-out, I’ll only be able to claim $5,000 as a tax depreciation claim. Instead, I asked the builder to break down the cost relative to the appropriate trade like carpets, air conditioning, workstations, etc. We did apportion part of the builder’s cost such as management fees, each of those trades. And guess what?

Our depreciation the first year alone was $35,000, not 5! That’s where knowing the construction costs and tax law together could make a world of difference. So there you have it! From this to this! Yes it was expensive but being able to claim $35,000 depreciation in one year alone was a significant boost.

To learn more about commercial property depreciation follow the link.

Or get a quote for a depreciation schedule by click here

claim depreciation on commercial property

Can you claim depreciation on commercial property?

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -